Letter: Spreading wealth

Titus Alexander
Thursday 04 February 1999 19:02 EST
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Sir: Professor Reich's assertion that "the global economy is rapidly approaching overcapacity" when a fifth of the world's population does not have enough to eat is an economic obscenity (The Global Crisis, 1 February).

Lack of demand in the world economy could be cured by paying people in the poorest countries more for their work. Our inflation is low and shops overstocked because so many people are paid less than pounds 5 a day to produce the goods. But instead of paying more, the Western financial system forces the poor to cut wages (by devaluing) and to pay interest to the rich for unrepayable debts.

TITUS ALEXANDER

London E17

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